FEDERAL DEFICIT WIDENED IN AUGUST

The federal government went another $27.8 billion deeper in the red in August, bringing the budget deficit to $203.4 billion with one month left to go in the government's fiscal year.

The latest projection of the Office of Management and Budget is for the 1985 deficit to reach a record $211.3 billion by the Sept. 30 end of the fiscal year.

The existing record is 1983's $195.4 billion.

Spending on social programs through the Department of Health and Human Services is up 2 percent from the same October-August period in the last fiscal year, to $290.5 billion.

Pentagon spending, the second-largest category, is up 10.2 percent, to $223 billion.

The third largest single category of spending is now interest on the national debt, up 17.1 percent from the same 11-month period last year, to $165.7 billion.

The administration projects that in the 1986 fiscal year the interest on the $1.8 trillion national debt will be larger than the annual deficit. Interest alone is expected to be $179.3 billion next year, compared to a deficit the White House says will be only $175.4 billion.

With the economy as slow as it is, however, many analysts say next year's projection for the total deficit is unrealistically low and that, if interest rates go higher, the interest cost could also be more.

The White House expects the government to end this fiscal year having spent $937.3 billion while taking in only $736 billion.

In August the government spent $83.6 billion and collected $55.8 billion.

Individual income taxes, at $296.3 billion for 11 months, are running 12 percent ahead of last year.

Corporate taxes, at $50.4 billion, are also 12 percent ahead of the same period in fiscal 1984.